Two Pakistani nationals indicted in Chicago over alleged $10 Million healthcare fraud scheme

WEB DESK: Two Pakistani nationals have been indicted in the United States for their alleged involvement in a $10m healthcare fraud scheme targeting federal and private insurance programmes.

According to an announcement by the U.S. Department of Justice on 12 February 2026, a federal grand jury in Chicago (Northern District of Illinois) returned an indictment against Burhan Mirza, 31, a resident of Pakistan, and Kashif Iqbal, 48, of Lavon, Texas.

Prosecutors allege that between 2023 and 2024 the pair participated in a scheme to submit fraudulent claims to Medicare the US federal health insurance programme for older people and certain individuals with disabilities as well as to private insurers. The claims were purportedly for medical services and durable medical equipment that were never provided.

The alleged fraud is said to have operated through nominee-owned laboratories and durable medical equipment suppliers shell companies established under front owners to conceal the true controllers of the businesses.

Mirza is accused of unlawfully obtaining identifying information relating to individuals, healthcare providers and insurers, and using that data to facilitate the submission of false claims on behalf of the nominee companies. He faces 12 counts of healthcare fraud and five counts of money laundering.

Iqbal, who was reportedly associated with several durable medical equipment providers that submitted the claims, faces 12 counts of healthcare fraud, six counts of money laundering, and one count of making a false statement to US law enforcement authorities. He is also accused of laundering the proceeds of the scheme and coordinating the transfer of funds from the United States to Pakistan.

Three alleged co-conspirators Mir Akbar Khan, 57, of West Chicago; Fasiur Rahman Syed, 47, an Indian national residing in Chicago; and Navaid Rasheed, 43, a Pakistani national based in Plano, Texas have already pleaded guilty to healthcare fraud charges and are awaiting sentencing.

Arraignments for Mirza and Iqbal have yet to be scheduled. The indictment contains allegations only, and all defendants are presumed innocent unless and until proven guilty in a court of law.

US officials described the scheme as an attempt to exploit taxpayer-funded healthcare programmes intended to serve vulnerable Americans, including older people and those living with disabilities. The case underscores ongoing efforts by US authorities to combat healthcare fraud, particularly schemes with transnational dimensions.

The matter has been widely reported in Pakistani media, including Dawn and The Express Tribune, reflecting the cross-border nature of the alleged offences.